SAM - Boston Beer cut to Neutral at Bernstein as hard seltzer sales slip

Boston Beer Company (NYSE:SAM) was cut to “Neutral” on Wednesday by Bernstein analyst Nadine Sarwat despite her remaining bullishness on long-term prospects. In a mea culpa of sorts, Sarwat admitted that she simply misjudged the trajectory for Truly hard seltzer sales and anticipates a cut to 2022 full-year guidance as sales in the key growth driver continue to fall.  “Earlier this year, we believed Truly volumes would return to modest growth as they lap the incredibly tough 2021 comps and the channel mix normalized,” Sarwat explained. “We were wrong. This is likely due to (in hindsight) the unsustainable cycle of flavor innovation and the growth of spirits-RTDs.” While she was incredibly optimistic about Twisted Tea sales and continued to tout Boston Beer (SAM) as a “rare gem”, the prospects for a guidance cut and continued uncertainty in Truly sales are enough reason to head to the sidelines at present. Indeed,

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Boston Beer cut to Neutral at Bernstein as hard seltzer sales slip